MORGAN STANLEY (1MS.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1MS - US6174464486 - Common Stock
152.74 EUR
-2.38 (-1.53%)
Taking everything into account, 1MS scores 3 out of 10 in our fundamental rating. 1MS was compared to 118 industry peers in the Capital Markets industry. Both the profitability and financial health of 1MS have multiple concerns. 1MS is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
- 1MS had positive earnings in the past year.
- 1MS had a negative operating cash flow in the past year.
- 1MS had positive earnings in each of the past 5 years.
- In multiple years 1MS reported negative operating cash flow during the last 5 years.
1.2 Ratios
- 1MS's Return On Assets of 1.14% is in line compared to the rest of the industry. 1MS outperforms 51.69% of its industry peers.
- With a decent Return On Equity value of 14.15%, 1MS is doing good in the industry, outperforming 72.88% of the companies in the same industry.
- 1MS has a Return On Invested Capital (1.46%) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.14% | ||
| ROE | 14.15% | ||
| ROIC | 1.46% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
- Looking at the Profit Margin, with a value of 13.32%, 1MS is in line with its industry, outperforming 51.69% of the companies in the same industry.
- 1MS's Profit Margin has declined in the last couple of years.
- 1MS has a Operating Margin of 18.06%. This is comparable to the rest of the industry: 1MS outperforms 58.47% of its industry peers.
- 1MS's Operating Margin has declined in the last couple of years.
- With a decent Gross Margin value of 54.99%, 1MS is doing good in the industry, outperforming 66.10% of the companies in the same industry.
- In the last couple of years the Gross Margin of 1MS has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.06% | ||
| PM (TTM) | 13.32% | ||
| GM | 54.99% |
OM growth 3Y-4.95%
OM growth 5Y-7.71%
PM growth 3Y-5.29%
PM growth 5Y-7.41%
GM growth 3Y-10.21%
GM growth 5Y-8.75%
2. Health
2.1 Basic Checks
- 1MS has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
- Based on the Altman-Z score of -0.05, we must say that 1MS is in the distress zone and has some risk of bankruptcy.
- 1MS has a Altman-Z score (-0.05) which is in line with its industry peers.
- 1MS has a Debt/Equity ratio of 7.41. This is a high value indicating a heavy dependency on external financing.
- 1MS has a worse Debt to Equity ratio (7.41) than 66.10% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.41 | ||
| Debt/FCF | N/A | ||
| Altman-Z | -0.05 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
- 1MS has a Current Ratio of 0.30. This is a bad value and indicates that 1MS is not financially healthy enough and could expect problems in meeting its short term obligations.
- With a Current ratio value of 0.30, 1MS perfoms like the industry average, outperforming 41.53% of the companies in the same industry.
- A Quick Ratio of 0.30 indicates that 1MS may have some problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 0.30, 1MS is in line with its industry, outperforming 41.53% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.3 | ||
| Quick Ratio | 0.3 |
3. Growth
3.1 Past
- 1MS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 28.59%, which is quite impressive.
- The Earnings Per Share has been growing by 9.28% on average over the past years. This is quite good.
- The Revenue has grown by 11.54% in the past year. This is quite good.
- The Revenue has been growing by 17.86% on average over the past years. This is quite good.
EPS 1Y (TTM)28.59%
EPS 3Y18.47%
EPS 5Y9.28%
EPS Q2Q%20.72%
Revenue 1Y (TTM)11.54%
Revenue growth 3Y21.98%
Revenue growth 5Y17.86%
Sales Q2Q%10.28%
3.2 Future
- Based on estimates for the next years, 1MS will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.05% on average per year.
- 1MS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.14% yearly.
EPS Next Y11.93%
EPS Next 2Y10.69%
EPS Next 3Y9.25%
EPS Next 5Y9.05%
Revenue Next Year8.65%
Revenue Next 2Y7.01%
Revenue Next 3Y6.07%
Revenue Next 5Y5.14%
3.3 Evolution
- The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 17.56, the valuation of 1MS can be described as rather expensive.
- 1MS's Price/Earnings ratio is a bit cheaper when compared to the industry. 1MS is cheaper than 64.41% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.25. 1MS is valued slightly cheaper when compared to this.
- 1MS is valuated correctly with a Price/Forward Earnings ratio of 15.69.
- Based on the Price/Forward Earnings ratio, 1MS is valued a bit cheaper than the industry average as 69.49% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.98, 1MS is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.56 | ||
| Fwd PE | 15.69 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, 1MS is valued a bit cheaper than the industry average as 66.95% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 21.01 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.47
PEG (5Y)1.89
EPS Next 2Y10.69%
EPS Next 3Y9.25%
5. Dividend
5.1 Amount
- 1MS has a Yearly Dividend Yield of 2.19%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 3.08, 1MS pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.82, 1MS pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.19% |
5.2 History
- On average, the dividend of 1MS grows each year by 18.94%, which is quite nice.
Dividend Growth(5Y)18.94%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- 1MS pays out 41.70% of its income as dividend. This is a bit on the high side, but may be sustainable.
- 1MS's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP41.7%
EPS Next 2Y10.69%
EPS Next 3Y9.25%
MORGAN STANLEY / 1MS.MI FAQ
What is the ChartMill fundamental rating of MORGAN STANLEY (1MS.MI) stock?
ChartMill assigns a fundamental rating of 3 / 10 to 1MS.MI.
What is the valuation status for 1MS stock?
ChartMill assigns a valuation rating of 3 / 10 to MORGAN STANLEY (1MS.MI). This can be considered as Overvalued.
What is the profitability of 1MS stock?
MORGAN STANLEY (1MS.MI) has a profitability rating of 3 / 10.
Can you provide the financial health for 1MS stock?
The financial health rating of MORGAN STANLEY (1MS.MI) is 1 / 10.
What is the earnings growth outlook for MORGAN STANLEY?
The Earnings per Share (EPS) of MORGAN STANLEY (1MS.MI) is expected to grow by 11.93% in the next year.